M7 Real Estate, the pan-European investor and asset manager, has sold three assets in Poland, on behalf of an M7 vehicle, PVBRI.
Financial details were not disclosed.
According to M7, PVBRI was created in 2017 to acquire financially challenged corporates that had high levels of senior debt with a Polish bank. M7 structured the deals by acquiring the corporates that owned the assets, before executing an asset management strategy for the properties, that include two offices and a shopping centre.
'These sales demonstrate our ability to successfully turn around formerly distressed assets; improve their performance by leveraging our asset management expertise and local knowledge; and source suitable purchasers. Additionally, by increasing the values of these buildings, we have improved the recovery to the senior lender,' said Katarzyna Parkot, MD Poland at M7.
The assets sold include two office buildings in Poznan, Dwor Hamburski, and RB House, comprising 3,741 m2 and 2,431 m2 of space respectively. M7 said it had managed to enhance the income profiles of both properties, which were divested to local investors identified by M7.
Zgorzelec Plaza, a 12,624 m2 shopping centre located in Zgorzelec on the border with Germany, has been sold to DL Invest Group, a Polish developer and investor specialising in retail centres and office buildings, which is based in Katowice.
Following the acquisition of the asset in 2017, M7 extended 14 lease agreements and signed six new lettings, significantly increasing both the WALT and the occupancy. M7 said that a comprehensive asset management plan, involving the expansion of the food court, enabled it to successfully reposition the asset into one of the most popular shopping centres in the city centre.
Footfall and turnover achieved record levels in 2019 following targeted events organised for Christmas, Valentine’s Day and the Easter holiday.
